Company Number: 13681196

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and negative working capital in the latest two financial years, indicating solvency concerns. The extremely low current assets relative to current liabilities highlight liquidity risks. These financial indicators, combined with a micro-entity scale and minimal operational footprint, suggest elevated risk for meeting obligations.

2. Key Concerns:

• Negative Net Assets and Capital Reserves: The company’s net assets deteriorated to -£5,394 in 2024 from -£4,217 in 2023, implying accumulated losses exceeding equity.
• Poor Liquidity Position: Current assets stand at only £1 against current liabilities of £3,661 (2024), indicating inability to cover short-term debts without external support.
• Minimal Operational Scale: The company employs only one person, with no fixed assets reported in 2024, limiting operational resilience and growth potential.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement filings are up to date, reflecting regulatory compliance and good governance in administrative matters.
• Single Shareholder Control: The controlling shareholder and director is one individual, which may facilitate swift decision-making and streamlined governance.
• Industry Classification: Operating in manufacture of games and toys, which can be a niche but potentially scalable market if managed properly.

4. Due Diligence Notes:

• Investigate the nature and cause of negative equity and working capital deficits—whether due to operational losses, financing structure, or other factors.
• Review cash flow statements (not provided) for evidence of ongoing liquidity support or capital injections by the shareholder.
• Assess the business model viability and future revenue prospects given the minimal assets and manpower.
• Clarify any contingent liabilities or off-balance sheet obligations that might exacerbate financial risk.
• Evaluate director’s track record and any related party transactions given sole control.